Court Issues Production Warrants for Former DJB CEO in STP Tender Scam

The CSR Journal Magazine

The Rouse Avenue Court has issued production warrants for former Delhi Jal Board (DJB) Chief Executive Officer Udit Prakash Rai and Nagendra Yadav in connection with the alleged DJB Sewage Treatment Plant (STP) tender scam. Both are currently in judicial custody and are scheduled to appear before the court on August 29.

Former DJB Officials to Appear

The warrants were issued by Duty Judge Neha Paliwal Sharma following a request from the Anti-Corruption Branch (ACB), which is investigating alleged irregularities in the awarding of STP contracts.

Rai and Yadav were arrested by the ACB in connection with the case. Former Delhi Minister Satyender Jain has also been arrested and named as an accused in the investigation.

Pankaj Verma Sent to Judicial Custody

Meanwhile, the court remanded Pankaj Verma, owner of Srijanhar Enterprises, to judicial custody until September 3. Verma was produced before the court after spending two days in ACB custody.

The investigating agency had sought his custodial interrogation to examine alleged financial transactions and contractual arrangements involving companies connected to the tender process.

Probe Into ₹1,943 Crore STP Contracts

The case originated from a vigilance reference dated May 10, 2024, concerning alleged corruption in the tendering and awarding of contracts for the augmentation and upgradation of 10 STPs across Delhi.

According to the allegations, the projects were divided into four packages with a combined tender value of around ₹1,943 crore. Investigators have alleged that DJB officials, private contractors, technology providers and intermediaries worked together to manipulate tender conditions and inflate project costs.

The allegations also include compromising environmental requirements, allegedly facilitating the award of contracts to a particular group and causing financial losses to the public exchequer.

Defence Disputes Allegations

During proceedings concerning Verma’s custody, ACB prosecutor Manish Rawat argued that his interrogation was necessary to examine agreements involving Srijanhar Enterprises and Eurotech, trace financial transactions and establish the extent of the alleged losses.

Verma’s defence, however, argued that neither he nor his company was named in the original FIR. His lawyers maintained that the transactions under investigation were legitimate business dealings and disputed the prosecution’s interpretation of payments involving Dhanvine Engineering.

The investigation remains ongoing, with the authorities examining the alleged financial network and possible involvement of other individuals in the tender process.

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